If you prefer picture than tables… well, that’s your lucky day because it will be the first one on this blog! ;-)

Known Team's Prices in the NBA Since 1962

This graph and table below have basically the same content as yesterday’s data but it’s focus is on a different piece of the puzzle… Here’s detailed version of League-Wide Picture of Team’s Prices.
BTW, I adjusted numbers not only for inflation but also to the full 100% [when possible].
For example, if someone bought 25% of any team for 10M$ I listed it as 40M$.

OK, that was fun and all but I think there’s a point to be made here… and yes, that means a new table with new information [numbers are from insidehoops.com and are adjusted for inflation to average for 2010]…

Years

Number of Sales With Known Prices

Avg Price per Team

Avg Total TV Revenue for NBA

Avg TV Revenue per Team

1960-69

7

17,5

9,7

0,69

1970-79

8

27,1

35,7

1,62

1980-89

17

50,0

72,3

2,89

1990-99

16

202,2

403,8

14,95

2000-09

16

346,9

828,7

28,58

So here’s my question: Why Rising Franchise’s Values aren’t more of a Factor in CBA Discussion?
If we assume slight early losses, and then sizable profit with a sale after X number of years that was still a very good investment, right? Obviously, it brings a question “how long will those prices rise?” and I have no idea but considering that next TV contract is coming up and supply of wealthy people isn’t exactly thin…
I just think it should be discussed more…

7 responses to “Should Team’s Prices Become a Factor in Next CBA?”

Leszczur

July 7, 2011 at 08:39

Franchise Values are not a factor in CBA discussion probably because players are not participating in profits sharing after the team is sold.
And secondly there probably is no simple formula to translate franchise value to revenues on a yearly basis.
That’s why it’s not fair to ask players to finance teams’ purchase as it currently is being proposed.

It shouldn’t be too difficult to calculate the value of a franchise. Ticket revenue + merchandise sales, etc minus costs like player salaries, facilties, etc. From that create a soft cap, similar to team salary caps. If an owner purchases a franchise over the the soft cap, he pays a luxury tax, just like they do for player salaries. All luxury tax money from team sales, is divided among the players. This will help hold team purchases in line and protect salaries.

Yes, team purchases should be part of the CBA. They affect a teams abiility to turn a profit and as a result can affect player salaries.

“It shouldn’t be too difficult to calculate the value of a franchise. Ticket revenue + merchandise sales, etc minus costs like player salaries, facilties, etc.”
In this scenario aren’t you assuming that all those things are predictable from year to year?

Also again I’m not sure that owners will even talk about a solution where they take an additional financial hit.